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Robots and analyst forecast precision: Evidence from Chinese manufacturing

Author

Listed:
  • Cui, Huijie
  • Liang, Shangkun
  • Xu, Canyu
  • Junli, Yu

Abstract

This paper investigates whether industrial robot adoption in manufacturing industries improves subsequent analyst forecast performance. The evidence suggests that the adoption of industrial robots has a positive correlation with analyst forecast precision, reflected as lower analyst forecast bias and forecast dispersion. It is also found that enhancing total operating efficiency and promoting information dissemination are two possible channels through which industrial robot adoption improves analyst forecast precision. Furthermore, cross-sectional analyses show that the positive link is more pronounced in more ex-ante uncertain firms and private firms. Overall, our paper provides comprehensive evidence for the industrial robot spillover effect on corporate activities.

Suggested Citation

  • Cui, Huijie & Liang, Shangkun & Xu, Canyu & Junli, Yu, 2024. "Robots and analyst forecast precision: Evidence from Chinese manufacturing," International Review of Financial Analysis, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:finana:v:94:y:2024:i:c:s1057521924001297
    DOI: 10.1016/j.irfa.2024.103197
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    More about this item

    Keywords

    Industrial robot; Analyst forecast; Operating efficiency; Information dissemination;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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